A question we hear a lot goes something like this:
Why should I pay a $25,000 franchise fee plus ongoing royalties? Wouldn't I be better off starting a business on my own and saving that money?
What do I really get for my $25,000 plus royalties?
We'll get specific in the sidebar, with an actual list of things you get as a Driven Landscapes franchisee. But first, let's look at some numbers:
- About 44% of landscape company locations do less than $200,000 in gross revenue.1
- For 49% of companies doing under $200K, the net profit is less than 10%.2
- And, for 22% of companies doing under $200K, the net profit is less than 4%.2
Every situation is different, but those numbers above are real. A lot of landscape business owners pay themselves a reasonable salary and make a small profit, but they don't grow. They get to a certain point and just stall.
A lot of companies have numbers that don't grow very much and look kind of like this:
- revenue of $200,000/year with a 6% net profit
- a net profit of about $12,000
You'd be crazy to pay a franchising fee and royalties if you were expecting those kind of numbers. Incidentally, we know of some competitors who charge a bigger fee than we do and their franchises perform in that range.
The kind of scenario we prefer
But, we want you to be dealing with bigger numbers. Of course, we can't guarantee anything specific, but just to pick an easy example, imagine the numbers looking more like this:
- $1,000,000 with a profit of 15% = $150,000
- you pay us a 6% royalty of $60,000
- you still come out ahead $90,000 for that year
That's the goal. We don't want you to get stuck. We don't want you to stall like so many independent companies do. We want your landscaping business to thrive and grow year after year.
We're going to work hard to help you get there. THAT'S what you get for your franchise fee and royalties.